TWO-TENANT RETAIL OFFERING 7411 S. WESTERN AVE, LOS

TWO-TENANT RETAIL OFFERING 7411 S. WESTERN AVE, LOS ANGELES, CA 90047

7411 S. WESTERN AVE, LOS ANGELES, CA 9004702

PAGE

Investment Summary

Retail Aerial

Investment Highlights

Financing

Retail Aerial

Income & Expenses

Location Overview

03

04

05

06

07

08

10

CONTACT INFORMATION

JOHN KATNIKVice President(424) 317-9569

MIKE HANASSABSenior Director(424) 325-2642

ELLIOT HASSANSenior Director(424) 325-2643

TWO-TENANT RETAIL OFFERING

TABLE OF CONTENTS

CONTACT JOHN KATNIK03

Loan quote provided by James Capital Advisors based on market conditions at this time. Actual rates and terms will vary based on market conditions at closing.

3.65%Rate

30 YearAmortization

Debt Quote

Brad KrausSenior Director, Head of Capital Markets(424) [email protected]

LTV<70%

$

$

Street Address

City

State

Zip

APN

Cumulative GLA

Lot Size

Year Built

7411 S. Western Ave

Los Angeles

CA

90047

6017-009-003

0.15 AC

1951

$283.33

$112,580

Price / SF

Pro Forma Cap Rate

Pro Forma NOI

3.88%

Unit No. Unit Type Unit SF TermLease TypeRent / SFRent / SF Monthly RentMonthly RentPRO FORMAPRO FORMA

Front Unit

Back Unit

TOTAL

Auto Body Shop

Vacant Retail Space

3,500 SF

2,500 SF

$3,000

$5,000

$8,000

$0.86

$2.00

$7,000

$5,000

$12,000

$2.00

$2.00

Responsible for Utility Service

-

Month to Month

Vacant

INVESTMENT SUMMARYTWO-TENANT RETAIL OFFERING

6,000 SF

$1,700,000List Price

Cap Rate

$66,020NOI

% 6.62%

mailto:john.katnik%40jamescapitaladvisors.com?subject=7411%20S.%20Western%20Ave%20-%20Los%20Angeles%2C%20CA


RETAIL AERIALTWO-TENANT RETAIL OFFERING

Central Los Angeles Retail Offering

Located on Western Avenue and just south of Florence Avenue, the subject property is centrally located to all major employment hubs and is very central to all of LA County.

Owner-User Opportunity

With one unit delivered vacant at the close of escrow, this is an idea owner-user opportunity.

Value-Add | Below Market Rents & One Vacancy

The current tenant is paying a below market rent and is on month to month term with no extension. The back unit will be delivered vacant at the close of escrow

Minimal Expenses with Upside

The current tenant currently is responsible for all utility cost. The landlord is responsible for property tax and insurance. The new owner can implement Absolute Net (NNN) leases with new tenants.


INVESTMENT HighlightsTWO-TENANT RETAIL OFFERING



FinancingTWO-TENANT RETAIL OFFERING

Down Payment

Loan Amount

Interest Rate

Amortization / Fixed Period

Term

* Contact our financing team for a custom quote.

$595,000 (35%)

$1,105,000

3.50%

30-Year / 5-Year

360 Month

Debt Service

Pre-Tax Cash Flow

Principle Reduction

Total Return

CURRENT

-$59,543

$6,477

-$21,206

$27,683

PRO FORMA

-$59,543

$53,037

-$21,206

$74,243

(8.91%)

(12.48%)

(1.09%)

(4.65%)




RETAIL AERIAL


INCOME

Base Rental Income

Gross Potential Income

Vacancy Allowance

Effective Gross Income

Operating Expenses

Net Operating Income

EXPENSE

Taxes

Insurance

Repairs

Reserves

Operating Expenses

(3%)

(19%)

(3%)

(29%)

CURRENT

$96,000

$96,000

$2,880

$93,120

$27,100

$66,020

CURRENT

$20,400

$2,700

$2,000

$2,000

$27,100

PRO FORMA

$144,000

$144,000

$4,320

$139,680

$27,100

$112,580

PRO FORMA

$20,400

$2,700

$2,000

$2,000

$27,100


Income & Expense



The Entertainment Capital of the World

The City of Los Angeles holds many distinctions. L.A. is the entertainment capital of the world, a cultural mecca boasting more than 100 museums, many of them world-class, and a paradise of idyllic weather. From tourist attractions like the Walk of Fame’s collection of stars (numbering more than 2,614 and growing by one or two a month) to career opportunities like those presented in the expanding tech industry, Los Angeles is the place to be. It is the only city in North America to have hosted the Summer Olympics twice - and by 2028 the third time. Downtown L.A. is the largest government center outside of Washington, D.C.

Downtown Los Angeles

Downtown Los Angeles (DTLA) is the central business district of Los Angeles, California, as well as a diverse residential neighborhood of some 85,000 people. Downtown, comprising diverse smaller areas such as Chinatown, Little Tokyo and the Arts District, offers renowned art museums, cutting-edge restaurants & hip bars. Modern high-rises mix with architectural landmarks.

Los Angeles, CA

Los Angeles is the largest city in California with an estimated population of nearly 4 million, and is the second-largest city in the United States, after New York City, and the third-largest city in North America. Los Angeles is known for its Mediterranean climate, ethnic and cultural diversity, Hollywood entertainment industry, and its sprawling metropolitan area. Los Angeles lies in a basin in Southern California, adjacent to the Pacific Ocean, with mountains as high as 10,000 feet.

The city, which covers about 469 square miles, is the seat of Los Angeles County, the most populous county in the United States. The Los Angeles metropolitan area (MSA) is home to a population of 13.1 million, making it the second-largest metropolitan area in the nation after that of New York. Los Angeles has a diverse economy and hosts businesses in a broad range of professional and cultural fields. It also has the busiest container port in the Americas. In 2017, the Los Angeles metropolitan area had a gross metropolitan product of $1.0 trillion, making it the city with the third-largest GDP in the world, after Tokyo and New York City.


LOCATION OVERVIEW


1. USC15 Min Drive4.9 Miles From Subject Property

2. SoFi Stadium7 Min Drive2.9 Miles From Subject Property

3. The Forum11 Min Drive3.1 Miles From Subject Property

4. STAPLES Center21 Min Drive6.9 Miles From Subject Property

5. LAX19 Min Drive6.3 Miles From Subject Property

6. Natural History Museum14 Min Drive4.3 Miles From Subject Property


LOCATION OVERvIEW


USC

The University of Southern California is a leadingprivate research university located in Los Angeles —a global center for arts, technology and internationalbusiness.

STAPLES Center

Staples Center is a multi-purpose arena in DowntownLos Angeles. It is known as the sports & entertainment center of the world and home to four professional sports franchises.

SoFi Stadium

SoFi Stadium is a stadium and entertainment com-plex located at the former site of the Hollywood Park Racetrack 3 miles from LAX Airport, immediately southeast of The Forum.

LAX

Los Angeles International Airport, commonly referred to as LAX, is the primary international airport serving Los Angeles and its surrounding metropolitan area. In 2019, LAX handled 88,068,013 passengers.

The Forum

The Forum is a multi-purpose indoor arena north of SoFi Stadium and the Hollywood Park Casino. It is about 3 miles east of Los Angeles International Airport. It holds the capacity for over 17,500.

Natural History Museum

The Natural History Museum of Los Angeles County is the largest natural and historical museum in the western United States. Its collections include nearly 35 million specimens.


LOCATION OVERvIEW

060504

01 02 03


University of Southern Califonia

The South Bay

The subject property is in close proximity to the South Bay. The South Bay is a region of the Los Angeles metropolitan area which contains fifteen cities plus portions of the City of Los Angeles. The area is bounded by the Pacific Ocean on the south and west and generally by the City of Los Angeles on the north and east. Its name comes from its location on the south end of the Santa Monica Bay.

University of Southern California

The subject property is less than 5 miles from the subject property. The private research university enrolls an average of 19,500 undergraduate and 26,500 post-graduate students from all fifty U.S. states and more than 115 countries. It’s also the largest private employer in the Los Angeles area.

Los Angeles SoFi Stadium

SoFi Stadium is an unprecedented and unparalleled sports and entertainment destination being built in Inglewood, CA. Located on the site of the former Hollywood Park racetrack, and less than three miles from the subject property, the stadium is the centerpiece of a 298-acre mixed-use development featuring retail, commercial office space, a hotel, residential units, and outdoor park spaces.


LOCATION OVERvIEW


University of Southern CalifoniaProposed Inglewood Basketball and Entertainment Center

Tesla Design Center

Founded in 2003, the American company specializes in electric automotives, energy storage and solar panel manufacturing. Their design studio is located in Hawthorne, less than 6 miles from the subject property. This design center serves as a campus for Tesla employees and allows Tesla owners to lounge and charge their cars while they tour the facilities.

Space X

Alongside Tesla, lies Space X. Space Exploration Technologies Corp., doing business as SpaceX, is a private American aerospace manufacturer and space transport services company headquartered in Hawthorne, California. It was founded in 2002 by entrepreneur Elon Musk with the goal of reducing space transportation costs and enabling the colonization of Mars.

LA Clippers Arena

The Clippers are constructing a new $1.2 billion basketball arena in near proximity to SoFi Stadium along with a practice facility, team offices, a medical facility, retail stores, restaurants and parking. The Clippers new arena in Inglewood, will be a one-of-a-kind destination for basketball and live experiences. Construction on the new facility will begin in Summer 2021.


LOCATION OVERvIEW


University of Southern Califonia

Raytheon Space and Airborne Systems

From missile warning and intelligence to weather, navigation and beyond, Space and Airborne System’s end-to-end space solutions deliver mission breakthroughs. Raytheon Space and Airborne Systems is one of the four business segments of U.S. defense and aerospace conglomerate Raytheon Technologies. They combine complementary technology offerings and world-class engineering teams to deliver innovative solutions. RIS has a total employment of 39,000 and 2019 sales of US$ 15 billion. They are located less than 8 miles away from the subject property.

Northrop Grumman Aerospace Systems

Northrop Grumman Corporation is an American global aerospace and defense technology company. With 90,000 employees and an annual revenue in excess of $30 billion, it is one of the world’s largest weapons manufacturers and military technology providers. The firm ranks No. 108 on the 2020 Fortune 500 list of America’s largest corporations. Their Aerospace Systems division is headquartered in Redondo Beach, California. They produce aircraft, spacecraft, high-energy laser systems and microelectronics for the U.S. and other nations. It is less than 10 miles away from the subject property.


LOCATION OVERvIEW


POPULATION

2025 Projection

2020 Estimate

2010 Census

1-Mile 3-Mile 5-Mile

HOUSEHOLDS

2025 Projection

2020 Estimate

2010 Census

Average Income

Median Income

1-Mile 3-Mile 5-Mile

Los Angeles, CA

Los Angeles is on the leading edge of several growth industries. The Los Angeles metropolitan area, with more than 23,000 art jobs, is the country’s leading artistic center, surpassing the previous champion, New York. In other words, Los Angeles has both a larger concentration and absolute number of artists than New York. The L.A. five-county area is also a major tech center, with more than 700,000 people at work in health services/biomedical activities and 190,000 people in aerospace.


DEMOGRAPHICS

37,437

11,949

411,535

120,271

1,070,859

307,387

37,645

12,046

413,863

121,226

1,075,312

308,915

37,936

12,320

417,173

123,661

1,075,364

310,340

$64,584

$47,266

$58,393

$41,496

$60,967

$43,016

@jamescapitaladvisorswww.jamescapitaladvisors.com16

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guar-antees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or com-parable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

CONFIDENTIALITY

release

NON-ENDORSEMENT

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

https://jamescapitaladvisors.com/

Request More Info | Submit Offer17

LISTING AGENTS

MIKEHANASSAB (424) 325-2642

[email protected] RE Lic. 01484891Senior Director

ELLIOT HASSAN (424) 325-2643

[email protected] RE Lic. 01481211Senior Director

JOHN KATNIKVice President

(424) [email protected] RE Lic. 02002695

JAMES CAPITAL ADVISORS, INC.

CONTACT INFORMATION

https://www.instagram.com/jamescapitaladvisors/

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TWO-TENANT RETAIL OFFERING 7411 S. WESTERN AVE, LOS